Government of India has vide its Notification F.No.
4(19)-W&M/2014 dated March 04,2016 announced that the Sovereign Gold Bonds,
2016 (“the Bonds”) will be open for subscription from March 8, 2016 to March
14, 2016. The Government of India may, with prior notice, close the Scheme
before the specified period. The terms and conditions of the issuance of the
Bonds shall be as follows:
The Reserve Bank of India (RBI) has issued a notification on third tranche of Sovereign Gold Bonds, 2016, dated March 04, 2016. Applications for the bond will be accepted from March 8, 2016 to March 14, 2016. Copy attached for your ready reference.
In this connection, Shri Shaktikanta Das, Secretary DEA during the video conference held on March 03, 2016 with Chief Executives of various banks, RBI and IBA, requested the banks to make their best efforts to reach out to potential customers to invest in the third tranche of Sovereign Gold Bonds.
1. Eligibility for Investment:
In this connection, Shri Shaktikanta Das, Secretary DEA during the video conference held on March 03, 2016 with Chief Executives of various banks, RBI and IBA, requested the banks to make their best efforts to reach out to potential customers to invest in the third tranche of Sovereign Gold Bonds.
1. Eligibility for Investment:
The Bonds under this Scheme may be held by a person resident
in India, being an individual, in his capacity as such individual, or on behalf
of minor child, or jointly with any other individual. The bond may also be held
by a Trust, Charitable Institution and University. “Person resident in India”
is defined under section 2(v) read with section 2(u) of the Foreign Exchange
Management Act, 1999
2. Form of
Security
The Bonds shall be issued in the form of Government of India
Stock in accordance with section 3 of the Government Securities Act, 2006. The
investors will be issued a Holding Certificate (Form C). The Bonds shall be
eligible for conversion into de-mat form.
3. Date of Issue
Date of issuance shall be March 29, 2016.
4. Denomination
The Bonds shall be denominated in units of one gram of gold
and multiples thereof.
Minimum investment in the Bonds shall be two
grams with a maximum limit of subscription
of five hundred grams per person per fiscal year (April – March).
5. Issue Price
Price of the Bonds shall be fixed in Indian Rupees on the
basis of the previous week’s (Monday – Friday) simple average closing price for
gold of 999 purity, published by the India Bullion and Jewellers Association
Ltd. (IBJA).
6. Interest
The Bonds shall bear interest at the rate of 2.75 percent
(fixed rate) per annum on the amount of initial investment. Interest shall be
paid in half-yearly rests and the last interest shall be payable on maturity
along with the principal.
7. Receiving Offices
Scheduled commercial banks (excluding RRBs), designated Post
Offices (as may be notified) and Stock Holding Corporation of India Ltd (SHCIL)
are authorized to receive applications for the Bonds either directly or through
agents.
8. Payment Options
Payment shall be accepted in Indian Rupees through Cash up to
a maximum of Rs.20,000/- or Demand Drafts or Cheque or Electronic
banking. Where payment is made through cheque or demand draft, the same shall
be drawn in favour of receiving office.
9. Redemption
i) The Bonds shall be
repayable on the expiration of eight years from February 8, 2016, the date of
issue of Gold bonds. Pre-mature
redemption of the Bond is permitted from fifth year of the date of issue on the
interest payment dates.
ii) The redemption
price shall be fixed in Indian Rupees on the basis of the previous week’s
(Monday – Friday) simple average closing price for gold of 999 purity,published
by IBJA.
10. Repayment
The receiving office shall inform the investor of the date of
maturity of the Bond one month before its maturity.
11. Eligibility for Statutory Liquidity Ratio (SLR)
The investment in the Bonds shall be eligible for SLR.
12. Loan against Bonds
The Bonds may be used as collateral for loans. The Loan to
Value ratio will be as applicable to ordinary gold loan mandated by the RBI
from time to time. The lien on the Bonds shall be marked in the depository by
the authorized banks.
13. Tax Treatment
Interest on the Bonds shall be taxable as per the provisions
of the Income-tax Act, 1961. Capital gains tax treatment will be the same as
that for physical gold.
14. Applications
Subscription for the
Bonds may be made in the prescribed application form (Form ‘A’) or in
any other form as near as thereto stating clearly the grams of gold and the
full name and address of the applicant. The receiving office shall issue an acknowledgment
receipt in Form ‘B’ to the applicant.
15. Nomination
Nomination and its cancellation shall be made in Form ‘D’
and Form ‘E’, respectively, in accordance
with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government
Securities Regulations, 2007, published in part III, Section 4 of the Gazette
of India dated December 1, 2007.
16.
Transferability
The Bonds shall be transferable by execution of an
Instrument of transfer as in Form ‘F’, in accordance with the provisions of the
Government Securities Act, 2006 (38 of 2006) and the Government Securities
Regulations, 2007, published in part III, Section 4 of the Gazette of India
dated December 1, 2007.
17. Tradability of
bonds
The Bonds shall be eligible for trading from such date as
may be notified by the Reserve Bank of India.
18. Commission for
distribution
Commission for distribution shall be paid at the rate of
rupee one per hundred of the total subscription received by the receiving
offices on the applications received and receiving offices shall share at least
50% of the commission so received with the agents or sub-agents for the
business procured through them.
19. All other
terms and conditions specified in the notification of Government of India in
the Ministry of Finance (Department of Economic Affairs) vide number F. No.4(13)
W&M/2008, dated 8th October 2008 shall apply to the Bonds.
No comments:
Post a Comment